EUR/USD surrenders gains, back to square one around 1.1150

By FXStreet FXStreet (Mumbai) – The EUR rally lost steam and the major retraced to the familiar range around 1.1150 levels heading into the European afternoon as the markets continue to favour the US currency amid divergent monetary policy outlooks.

EUR/USD forms a doji on daily charts

The EUR/USD pair trades modestly flat at 1.1147, retreating from fresh session highs at 1.1178 reached earlier this session. The main currency pair eased-off highs and now trades muted awaiting fresh incentives from the week ahead as today’s macro calendar remains fairly quiet with US markets closed on Labour Day holiday.

More so, the common currency lost strength and fell into the red versus the US dollar also after the European stocks seem to have stabilized, resulting in improved risk sentiment again.

Earlier in the European morning, the EUR/USD pair climbed higher, within a shouting distance of 1.12 barrier as the EUR bulls received fresh impetus as the China re-open led renewed risk sentiment eased a bit as focus shifted to the upcoming China trade and CPI data due later this week, diminishing bids for the USD.

Looking ahead, trading is expected to be in a narrow range as the European calendar is almost empty while the US …read more

Source:: FX Street